Imagine this scenario:
* say you have to pay $20 for an ad click on "SQL Server backup"
* the conversion rate is 10%
* with a 10% conversion rate, each sale will have $200 ($20 divided by 0.10) in marketing costs
* If the product costs $300, you have $100 ($300-200) in "profit"
However, if the conversion rate is 5%...
* each sale would have $400 in marketing costs ($20 divided by 0.05)
* you lose $100 per sale
Given the high cost per click for specialized keywords, they need a high conversion rate to use AdWords profitably.
Imagine this scenario:
* say you have to pay $20 for an ad click on "SQL Server backup"
* the conversion rate is 10%
* with a 10% conversion rate, each sale will have $200 ($20 divided by 0.10) in marketing costs
* If the product costs $300, you have $100 ($300-200) in "profit"
However, if the conversion rate is 5%...
* each sale would have $400 in marketing costs ($20 divided by 0.05)
* you lose $100 per sale
Given the high cost per click for specialized keywords, they need a high conversion rate to use AdWords profitably.